Quote:
Originally Posted by TheDoc
I know it from the American point of viewing living in Canada and working. I can't really say how it works in other places..
Not at all, very safe, won't ever get blocked, and legal if done correctly.
Lots of Americans own other companies offshore, why I asked this.. Yeah, going to be a tough one.
I don't have to declare what the company made, I'm not a majority share holder. And I think I would need to be a director, maybe.
Hehe, read up on it.. It's not taxable income.. I just don't remember all the ins and outs of it.
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On the last point first
- Yep, there may be a legal loophole, but would think any tax authority would want evidence from a foundation and probably some paperwork to establish the true purpose of the foundation, who the trustee is and all kinds of stuff.
Back to point one - let's put it this way, - the problem is not so much other countries, but down to personal circumstances and what citizenship an individual may hold. If that happens to be a US citizenship - major problems. If it is citzenship of any other industrialised country - not a big deal. In for example... the UK, it's simply a matter of announcing "I'm leaving - don't send any more tax forms" and you then live elsewhere and pay whatever or no tax depending on your new jurisdiction.
The second point - not sure where you are going on this. The use of plastic and drawing funds from foreign banks accounts where these funds are "earnings", and, not declaring these funds in a high tax regime, is illegal. Was not saying the cards would be blocked at the ATM end, but that no information would be provided at the bank-issuing end if that was an offshore area - that is what was mean't by blocking.
Point three - yes, there are plenty US folks with OS corps and most likely a fair amount are being operated legitimately and with good justification. (There are plenty reasons for OS other than taxation). However, bets are that the majority are no more than an excuse to avoid taxation while the beneficiaries remain within the US. This has been the source of many investigations and legal action over years.
Point four - Can't really comment on this - it's kinda complex when you say you are a US citizen living in Canada etc and really depends on the specifics of whatever scenario - not something to be published on a board
Summary! *s* There are ways to do whatever and achieve a good result, but these depend on citizenship, real purpose of any structure etc and are sure complicated if there is US citizenship involved. I'm not into bending rules and deviating to avoid taxation - it's far easier to have this transparent and comply with all laws and avoid hassle. For non-US folks, it is a lot easier than it sounds, tho if structures are involved, - it prob takes about a week thinking over the possibilities then - the rest falls into place fairly well.